Search Results For: co-operative bank


QUERY: The Finance Act, 2015 has amended clause (v) of sub section (3) of Sec. 194A w.e.f. June 01, 2015. Accordingly TDS is now required to be deduc-tion by a Co-op Bank from interest payment to its members subject to other provisions.

Now, can payment be made by other Co-operative Bank to other Co-operative Society without TDS?
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EXPERT:
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Section 194A(1) of the Income tax Act, 1961 provides

“Any person, not being an Individual or a Hindu Undivided Family, who is re-sponsible for paying to a resident any income by way of interest other than in-come by way of interest on securities shall at any time of credit of such income

QUERY: Is there any restriction or limit on refreshment/ gift paid to members whoever attends an annual general meeting? Can it be questioned by the AO?
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In case of listed companies, SEBI prohibits giving gifts to the share holders in AGM. However SEBI permits light refreshment, tea, coffee etc. to share holders in AGM.

Generally, the AO allows the expenses incurred at AGM, if it is reasonable and for the purpose of business.

QUERY: A co-operative bank wants to take accident group insurance for its members. Whether premium paid on the insurance for members can be debited to Profit & Loss account of the bank? Will it be allowed by the Income Tax Department?
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EXPERT:
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The following conditions should be complied to claim deduction u/s. 37 of the Act.

i) The expenditure should not be of the nature described in sections 30 to 36.

ii) It should have been incurred in the accounting year.